Apparatus and method for commercial transactions using a communication device

ABSTRACT

An apparatus for effecting commercial transactions with a server using a transaction card via a communication device is provided. The apparatus includes a transaction device coupled with the communication device for capturing information from the transaction card and a controller for converting the captured card information into an encrypted audio signal and for transmitting the audio signal to the communication device. The communication device delivers the audio signal to the server for processing the commercial transaction.

CROSS-REFERENCE TO RELATED APPLICATIONS

This application is a continuation of and claims priority to U.S. patentapplication Ser. No. 15/068,731, filed Mar. 14, 2016, now allowed, whichis a continuation of U.S. patent application Ser. No. 14/836,498, filedAug. 26, 2015, now U.S. Pat. No. 9,311,637, which is a continuation ofU.S. patent application Ser. No. 14/673,181, filed Mar. 30, 2015, nowU.S. Pat. No. 9,269,084, which is a continuation of Ser. No. 13/957,530,filed Aug. 2, 2013, now U.S. Pat. No. 9,016,566, which is a continuationof U.S. patent application Ser. No. 13/283,314, filed Oct. 27, 2011, nowU.S. Pat. No. 8,534,554, which is a continuation of U.S. patentapplication Ser. No. 13/239,512, filed Sep. 22, 2011, now U.S. Pat. No.8,281,998, which is a continuation of U.S. patent application Ser. No.13/162,001, filed Jun. 16, 2011, now U.S. Pat. No. 8,286,875, which is aU.S. National Stage of International Application No. PCT/IB2010/001367,filed Feb. 10, 2010, which claims the benefit of U.S. ProvisionalApplication No. 61/151,459, filed Feb. 10, 2009, each of which arehereby incorporated by reference herein in its entirety.

FIELD OF THE INVENTION

The present invention relates to an apparatus and a method forcommercial transactions using a communication device. More particularly,but not exclusively, the present invention relates to an apparatus and amethod of transactions via a wireless or a landline communicationsdevice using a transaction card.

BACKGROUND OF THE INVENTION

Electronic fund transfer over mobile phones is growing popular. Manysystems include combining a point of sale (POS) device with a wirelesscommunication device such as a cell phone.

These POS devices include a processor as well as an input device toreceive and process information from a transaction card such as a debitcard, a credit card, a cash card, a stored value card, an ATM card orcombinations thereof and the like. The input device may include a barcode reader, a magnetic stripe reader, an integrated circuit reader, asmartcard reader, a fingerprint scanner, an optical scanner, a signaturepad, an alphanumeric keypad (including a PIN pad), a proximity detector,an audio recording device, a camera or combinations thereof and thelike. The processor of the POS device receives information from thetransaction card and sends it to a remote computer via a communicationnetwork. This information can be transmitted by the processor via thewireless communication device. The wireless communication deviceincludes a transceiver, a communication port or any other type ofsimilar communication device capable of transmitting informationreceived by the portable transaction device processor from thetransaction card to the remote computer. The communication link betweenthe remote computer and the wireless communication device can beprovided by the processor of the wireless communication device. Theportable transaction device can also include a Global Positioning System(GPS) locator chipset so the location of the POS can be tracked by theremote computer. The remote computer sends the information it hasreceived to the processor of the institution that has issued thetransaction card that is being used. The processor of this institutionvalidates the requested transaction and sends this information to theprocessor of the portable transaction device via the remote computer andthe wireless communication device which are linked to each other by wayof the aforementioned communication network.

Known systems which combine POS devices with wireless communicationdevices present certain drawbacks such as the inconvenient length oftime to receive information regarding whether or not a given transactionhas been accepted or refused. Other systems currently available includePayPal mobile, Obopay, Swipepay mobile. These solutions use either SMSor FPRS as the means of communication. However, these communicationmethods often suffer from an unbounded delay or become unavailable inlocations where these services are not provided. Another drawback ofexisting systems is that they require registration and installation ofsoftware which are usually inconvenient for users to install. Moreimportantly, these systems do not work for all mobile phones given themany different combinations of hardware and software platforms.Moreover, these solutions are not secure. They are prone to spyware orkeylogger. Hence they are not compliant with payment card industrystandards such as PC1 PED.

OBJECTS OF THE INVENTION

An object of the present invention is to provide an apparatus forcommercial transactions using a transaction card via a communicationdevice in audio communication with a remote processor assembly.

An object of the present invention is to provide a system for commercialtransactions using a transaction card via a communication device methodfor commercial transactions using a communication device.

An object of the present invention is to provide a method for commercialtransactions using a transaction card via a communication device

An object of the present invention is to provide an apparatus forwireless transactions.

An object of the present invention is to provide a method for wirelesstransactions.

SUMMARY OF THE INVENTION

In accordance with an aspect of the present invention, there is providedan apparatus for commercial transactions using a transaction card via acommunication device in audio communication with a remote processorassembly, the apparatus comprising:

an input device for capturing information from the transaction card;

a controller for converting the captured card information into an audiosignal; and

a communication link for being connected to the communication device forthe transmission of audio signals therebetween;

wherein when the input device captures the card information, thecontroller converts the card information into an audio signal that istransmitted via the communication link to the communication device fortransmission thereof to the remote processor assembly for conversion ofthe audio signal into a digital signal and for validation of the cardinformation.

In an embodiment, the input device is further adapted to receiveadditional transactional information directly from a user; thecontroller is adapted to convert said additional information into anaudio signal.

In an embodiment, the remote processor assembly converts and transmitsthe card validation information as an audio signal to the communicationdevice which transmits this audio signal to the controller via thecommunication link, the controller being further adapted to convert thisaudio signal into a digital signal.

In an embodiment, the apparatus further comprises an output device forcommunicating the digital signal regarding the card validationinformation to the user.

In accordance with an aspect of the present invention, there is provideda system for commercial transactions using a transaction card via acommunication device, the system comprising:

a transaction apparatus adapted to capture information from thetransaction card and to convert the captured card information into anaudio signal, the transaction apparatus being linked to thecommunication device for the transmission of audio signals therebetween;and

a transaction server adapted to convert an audio signal into a digitalsignal, the transaction server being linked to the communication devicefor the transmission of audio signals therebetween and to a remoteprocessor/issuer adapted to validate the transaction card informationfor the transmission of digital signals therebetween,

wherein when the transaction apparatus captures the card information itis converted into an audio signal and transmitted to the communicationdevice for transmission to the transaction server to be converted to adigital signal and transmitted to the remote processor/issuer forvalidation.

In an embodiment, the transaction server is further adapted to convert adigital signal into an audio signal, wherein when the transaction serverreceives the digital signal of the validation information from theremote processor/issuer it is converted to an audio signal and sent tothe communication device which transmits this audio signal to saidtransaction apparatus.

In an embodiment, the transaction apparatus is further adapted toconvert an audio signal into a digital signal, wherein when thetransaction apparatus receives the audio signal of the validationinformation form the communication device it is converted to digitalsignal.

In an embodiment, the transaction apparatus comprises an output devicefor communicating the digital signal regarding the card validationinformation to a user.

In an embodiment, the transaction apparatus is adapted to receiveadditional transactional information directly from a user and to convertthis additional information into an audio signal.

In accordance with an aspect of the present invention, there is provideda method for commercial transactions using a transaction card via acommunication device, the method comprising:

capturing information from a transaction card;

converting the captured information to an audio signal;

transmitting the audio signal to a communication device;

transmitting the audio signal from the communication device to a serveradapted to convert audio signals;

converting the audio signal to a digital signal;

transmitting the audio signal to a processor for validating cardinformation; and

validating the digital signal of the card information.

In an embodiment, the method further comprises:

transmitting the digital signal of the validation information to aserver adapted to convert digital signals;

converting the digital signal of the validation information to an audiosignal;

transmitting the audio signal of the validation information to thecommunication device.

In an embodiment, the method further comprises:

transmitting the audio signal of the validation information from thecommunication device to a controller adapted to convert audio signals;

converting the audio signal to a digital signal; and

communicating the validation information via a user interface.

In accordance with an aspect of the present invention, there is providedan apparatus for commercial transactions using a transaction card viaaudio communication with a remote processor assembly, the apparatuscomprising:

an input device for capturing information from the transaction card;

a controller linked to said input device for converting the capturedcard information into an audio signal; and

a communication device linked to the controller in audio communicationwith the remote processor assembly for the transmission of audio signalstherebetween;

wherein when the input device captures the card information, thecontroller converts the card information into an audio signal that istransmitted via the communication device to the remote processorassembly for conversion of the audio signal into a digital signal andfor validation of the card information.

In an embodiment, the input device and controller device are provided ina single unit that is selectively linked to the communication device. Inan embodiment, the controller and the communication device are providedin a single unit that is selectively linked to the input device. In anembodiment, the controller is adapted to convert an audio signal into adigital signal.

In accordance with an aspect of the present invention, there is provideda system for commercial transactions using a transaction cardcomprising:

a transaction and communication assembly comprising an input device forcapturing information from the transaction card, a controller linked tothe input device for converting the captured card information into anaudio signal, and a communication device linked to the controller;

a transaction server adapted to convert an audio signal into a digitalsignal, the transaction server being linked to the communication devicefor the transmission of audio signals therebetween and to a remoteprocessor/issuer, adapted to validate the transaction card information,for the transmission of digital signals therebetween,

wherein when the input device captures the card information it isconverted by the controller into an audio signal and transmitted via thecommunication device for transmission to the transaction server to beconverted to a digital signal and transmitted to the remoteprocessor/issuer for validation.

In an embodiment, the controller is adapted to convert an audio signalinto a digital signal. In an embodiment, the transaction server isadapted to convert a digital signal into an audio signal fortransmission to said communication device.

In accordance with an aspect of the present invention, there is provideda system for commercial transactions using a transaction cardcomprising:

an input device for capturing information from the transaction card;

a controller linked to the input device for converting the captured cardinformation into an audio signal;

an interface display linked to the controller;

a communication device linked to the controller;

a transaction server adapted to convert an audio signal into a digitalsignal, the transaction server being linked to the communication devicefor the transmission of audio signals therebetween and to a remoteprocessor/issuer, adapted to validate the transaction card information,for the transmission of digital signals therebetween; and

a merchant server linked to the transaction server and providing aremote merchant interface to be accessed by a user for making atransaction,

wherein when a transaction is requested via the merchant interface, themerchant server receives this requests and sends it to the transactionserver which converts it to an audio signal for transmission to thecontroller via the communication device, the controller converts theaudio signal into an appropriate format for being displayed to the uservia said interface display, wherein when the input device captures thecard information it is converted by said controller into an audio signaland transmitted via the communication device for transmission to thetransaction server to be converted to a digital signal and transmittedto the remote processor/issuer for validation of the transactionrequest.

Other objects, advantages and features of the present invention willbecome more apparent upon reading of the following non-restrictivedescription of non-limiting illustrative embodiments thereof, given byway of example only with reference to the accompanying drawings.

BRIEF DESCRIPTION OF THE DRAWINGS

In the appended drawings, where like reference numerals denote likeelements throughout and in where:

FIG. 1 is a flow diagram showing a transaction network in accordancewith an non-restrictive illustrative embodiment of the present inventionincluding a transaction/communication assembly and a remote processorassembly;

FIG. 2 is a front view of a transaction/communication assembly inaccordance with an non-restrictive illustrative embodiment of thepresent invention;

FIG. 3 is a bottom perspective view of the transaction apparatus of thetransaction/communication assembly of FIG. 2;

FIG. 4 is a front view of the transaction apparatus of thetransaction/communication assembly of FIG. 2, shown here capturinginformation from a transaction card;

FIG. 5 is a flow diagram of the control system of a transactionapparatus in accordance with an non-restrictive illustrative embodimentof the present invention;

FIG. 6 is a flow diagram showing a transaction network in accordancewith another non-restrictive illustrative embodiment of the presentinvention including a transaction/communication assembly, a remoteprocessor assembly a merchant server and an associated remote interface;

FIG. 7 is a front view of a transaction/communication assembly inaccordance with another non-restrictive illustrative embodiment of thepresent invention; and

FIG. 8 is flow diagram of the control system of the communication deviceof the transaction/communication assembly of FIG. 7.

DETAILED DESCRIPTION OF ILLUSTRATIVE EMBODIMENTS

Generally stated and in accordance with an embodiment of the invention,there is provided an apparatus, a system and a method for transactionsvia transaction cards using a communication device. The communicationdevice includes a wireless communication device, a mobile phone, acellular phone, a landline phone, a personal digital assistant (PDA), apager computer, a Smart Phone™, a Blackberry™, an iPhone™, a netbook andthe like. The transaction card includes a payment card debit card,credit card, cash card, stored value card, ATM card and other electronicmethods of payment as will be understood within the art. In anembodiment, the apparatus, system and method disclosed herein arerelated to e-commerce or m-commerce such as mobile payment andperson-to-person money transfer. In an embodiment, the apparatus, systemand method integrate mobile and internet payment. A variety of onlinetransactions can be used within the context of the present invention.

In an embodiment, a transaction apparatus such as a portable point ofsale (POS) device for example is linked to the communication devicethereby providing a transaction device assembly. The transactionapparatus includes an input device to capture information from thetransaction card, a controller to process this information. In anembodiment, the transaction apparatus includes an output for providingfeedback to the user.

In an embodiment, the input device includes a bar code reader, amagnetic stripe reader, an integrated circuit reader, a smartcardreader, a fingerprint scanner, an optical scanner, a signature pad, analphanumeric keypad (including a PIN pad), a proximity detector, anaudio recording device, a camera or combinations thereof and the like.The input device is used to capture information including and notlimited to card data (e.g. track data, ICC data) from the transactioncard and other transaction data (transaction type/transaction amount) oridentification data such as a Personal Identification Number (PIN), aCard Verification Code (CVC)) from the user.

The captured information is processed and converted by the controller toan audio format that can be suitable for transmission over an analogvoice channel for example. The controller includes a securemicroprocessor unit (MPU) or microcontroller unit (MCU).

In an embodiment, the output device includes a user interface such as adisplay screen for example an LCD (Liquid Crystal Display) or LED (Lightemitting diode) screen, a buzzer, a speaker and other mechanisms.

Transaction data communication between the transaction apparatus and thecommunication device can be conducted by using any analog channel suchas a hands-free interface, Blue tooth, or other communication link suchas USB, Wifi and other technologies. For example, the processed carddata information can be transmitted to the communication device via theanalog hands-free jack in a mobile phone. Communication via this analogchannel can be one-way or two-way depending on the implementation andusage.

The communication device receives the information and sends it to aremote transaction processing server computer via a communicationnetwork. This information can be transmitted via the communicationdevice which includes a transceiver, a communication port or any othertype of similar communication device capable of transmitting informationcaptured by the transaction apparatus. The transaction processing servercomputer sends the information it has received to a remote processor ofthe institution that has issued the transaction card that is being used(the remote processor/issuer). The remote processor/issuer validates therequested transaction and either approves or rejects the transaction.The transaction result is then returned to the transaction processingserver computer which in turn returns the result to the communicationdevice. Optionally, the communication device may send the result to thetransaction apparatus. Depending on the implementation and usage, thetransaction result can be displayed on both or either one of thecommunication device or the transaction device.

With reference to the appended drawings, illustrative embodiments of thepresent invention will be described herein so as exemplify the inventionand by no means limit the scope thereof.

FIG. 1 shows a transaction network 10 including a transaction apparatus12 and communication device 14 which together form a transaction andcommunication assembly 16. The transaction apparatus 12 capturestransaction data and, in some implementations, provides a user withfeedback. Also shown is a transaction server 18 and a transactionprocessor/issuer 20 which together form a remote processor assembly 22.A request for a transaction occurs at the transaction apparatus 12 via atransaction card 24 (see FIG. 4). The transaction apparatus 12 capturesinformation from the transaction card and converts this information intoan audio signal. The audio signal is transmitted to the communicationdevice 14 for transmission to the transaction server 18 via acommunication network 26 (e.g. Internet, GSM/GPRS network). At thetransaction server 18, the audio signal is converted into a digitalsignal and transmitted to the remoter processor/issuer 20 via acommunication or payment network 28 (e.g. Internet, VisaNet, BankNet).The remoter processor/issuer 20 validates this request by accepting ordenying the request and sends this validation information to thetransaction server 18 which then converts this digital signal into anaudio signal and transmits it back to the assembly 16 providing theseller and buyer with a confirmation or a rejection message. As such,the communication device 12 acts as a receiver of the transaction datain analog audio format and also as a conduit to transmit the transactiondata to a transaction server 18 via the communication network 26.

With reference to FIGS. 2, 3 and 4, an example of a transaction andcommunication assembly 16 is shown including a portable transactionapparatus 12 in the form of a point of sale (POS) device linked to acommunication device in the form of mobile phone 20 via a communicationlink in the form of a cable 30. The cable 30 includes a pair of oppositeconnector ends 32 for being mounted to the phone jack 33 (see FIG. 3) ofthe POS device 12 and the jack 34 of the mobile phone 20.

The POS device 12 includes an output device such as a user interface inthe form of a display screen 36 which can be an LCD screen for example.The display screen 36 displays transaction information and instructionsas well as providing other feedback to the user. The POS device 12 alsoincludes an input device 38 such as card reader slot 39 for swiping orinserting the transaction card 24 and capturing information therefrom.The POS device 12 can also include an additional input device 40 in theform of a control pad including a PIN pad 42, and other control buttons44 allowing the user to enter transaction information which is alsocaptured by the POS device 12 and converted into an audio signal fortransmission to the communication device 14.

The transaction card 24 includes a magnetic stripe 46 as well as an ICchip 48.

With reference to FIG. 5, the transaction device 12 includes acontroller 50 in the form of a microcontroller unit (MCU). The inputdevice 38 can be in the form of an analog signal reader 52 such as amagnetic stripe reader and/or a digital signal reader 54 such as anIntegrated Circuit (IC) or Smart Card or EMV reader. In an embodiment,the transaction apparatus 12 is powered by a power source 56 optionallyincludes a printer 58 such as a thermal printer for example. Asmentioned above, in an embodiment, the input system of the transactionapparatus 12 includes the input device 38 as well as an additional inputdevice in the form of a control pad 40.

With reference to FIGS. 1 to 5, the general operation of the inventionwill now be described in accordance with a non-limiting illustrativeembodiment thereof.

In order to execute a commercial transaction, the user swipes the card24 through the slot 39; the analog information on the magnetic stripe 46is captured by the magnetic stripe reader 52 and transferred to the MCU50. In another embodiment, the digital information from the IC chip 48is captured by the digital signal reader 54 and is transferred to theMCU 50. Optionally, a PIN number may also be required to be entered viathe PIN pad 42 and the data is encrypted by the MCU 50.

The transaction data whether originally received in analog format or inencrypted digital format is converted by the MCU 50 into an analog audiosignal suitable for transmission over the analog communication linkbetween the transaction device and the communication device. In thisexample, this audio signal is then transmitted to the mobile phone viacable 30.

Transaction data is then transmitted to the transaction server 18 forprocessing. The transaction server 18 decrypts the signal and convertsit into a digital signal. This data is then transmitted to theprocessor/issuer 20 for validation. The processor/issuer 20 receives thetransaction data and then validates the information in order to acceptor reject the requested transaction. Once the transaction has beenaccepted or rejected, the processor/issuer 20 produces a messageconfirming the foregoing and transmits this information back to thetransaction server 18 in digital format.

The transaction server 18, having received the message from theprocessor/issuer 20, converts it into an audio signal and transmits thisinformation via the communication network 26 back to the mobile phone14.

The mobile phone 14 transmits the message back to the portabletransaction device 18 via cable 30. The MCU 50 decodes the analog audiosignal and converts it back into appropriate data format for processingand display via screen 36.

In another embodiment, the binary digital signal, whether originallyreceived in analog format or in encrypted digital format is compressedby the MCU 50 and converted into a hexadecimal signal. This hexadecimalsignal is then further compressed by the MCU 50 and converted into adual-tone multi-frequency (DTMF) audio signal. This DTMF signal is thentransferred by the MCU 50 to the mobile phone 14 and transmitted to thetransaction server 18.

The transaction server 18 decompresses the DTMF signal and converts intoa hexadecimal signal. This hexadecimal signal is then furtherdecompressed by the transaction server 18 and converted into a binarydigital signal. The transaction server 18 then transmits this binarydigital signal to the remote processor/issuer 20. The remoteprocessor/issuer 20 receives the binary digital signal and thenvalidates the information in order to accept or reject the requestedtransaction. Once the transaction has been accepted or rejected, theprocessor/issuer 20 produces a binary digital signal confirming theforegoing and transmits this information to the transaction server 18.The binary digital signal is compressed into a hexadecimal signal andthen recompressed into a DTMF audio signal which is then transmitted tothe mobile phone 14. The mobile phone 14 then transmits this DTMF audiosignal to the MCU 50 which decompresses the DTMF audio signal andconverts it into a hexadecimal signal. Finally this hexadecimal signalis then further decompressed and converted into an appropriate dataformat to be displayed via screen 36.

Therefore, in an embodiment, there is provided a payment systemconsisting of a transaction apparatus 12 and a transaction server 18.The transaction apparatus 12 allows for card data and PIN capture viathe input device 38 and the control pad 40. The controller 50 controlsthe operation flow of the transaction apparatus; it provides theencryption required for transaction and other channel encryptions aswell as memory. Audio communication between the transaction apparatus 12and the transaction server 18 is provided by the communication device14. Operation of the transaction apparatus is displayed on the userinterface (the display screen) 36. The transaction server 18 is used todecrypt the data sent by the communication device 14 where the data istranslated and forwarded to the payment network 28 including aprocessor/issuer 20 for further processing.

For example, in transactions such as in taxi or limousine services, thedriver swipes the credit card 24 of the passenger in the magnetic stripereader 52 of the POS device 12 which converts this analog data into anaudio signal and is connected to the driver's mobile phone 14 via thehands-free jack 34 for transmitting this data. The mobile phone 14 sendsthe audio signal to the remote transaction server computer 18 via thecommunication network 26 between the transaction server computer 18 andthe mobile phone 14. The transaction server computer 18 communicateswith the remote processor/issuer 20 of the financial institution thatissued the passenger's credit card 24 and validates the requestedtransaction by accepting or refusing it. The foregoing information isthen sent back to the transaction server computer 18 which converts itto an audio signal that is sent to the POS device 12 via the mobilephone 14. The display screen 36 informs the driver and the passenger ifthe transaction was accepted or not.

In another example, the apparatus, system and method provide for onlinepurchasing or money transferring. Hence, the transaction apparatus 12 isused for online purchase or money transfer.

FIG. 6 shows a transaction network 11 similar to the transaction network10 but including a merchant server 60 in communication via acommunication network 62 with the transaction serve 18 and with amerchant interface 66 provided by a remote device such as a computer viaa communication network 66 (e.g. the internet).

Therefore, there is provided an online system for commercialtransactions using a transaction card 24 via a communication device 14.The system is exemplified by the transaction network 11 and includes atransaction apparatus 12 linked to the communication device 14, amerchant server 60 providing a remote interface 66 to be accessed by theuser and a transaction server 18 linked to both the communication device14 and the merchant server 60. The merchant 66 interface allows forrequesting a transaction. The merchant server 60 sends this request tothe transaction server 18 which converts this information into an audiosignal and sends this audio signal to the communication device 14 sinceit is linked therewith for the transmission of audio signalstherebetween. The audio signal from the communication device 14 is sentto the transaction apparatus 12 which converts it to an appropriateformat so as to be displayed through the display screen 36. The userthen follows the displayed instructions and makes a payment aspreviously described.

In one example, the user accesses the merchant interface 66 such as awebsite to purchase. During checkout, the user selects the presentmethod as payment and enters their mobile phone number in the merchantwebsite 66. The merchant website 66 sends the user phone number alongwith the purchase details to the transaction server 18 via the merchantserver 60 and communication networks 66 and 662. The transaction server18 receives the request from the merchant and calls the phone numberprovided by the user. The mobile phone 14 picks up the call, thetransaction information including the payment amount, merchant name andthe like is sent from the transaction server 18 to the mobile phone 14in audio form such as through a global system for mobile (GSM) network26 in DTMF waveform for example. The user connects the transactionapparatus 12 to their mobile phone 14 and proceeds with the paymentinstructions displayed on the display screen 36. The user may have alsoconnected their mobile phone 14 to the transaction apparatus 12 prior toentering their phone number in the merchant website 64. The transactionapparatus 12 receives the audio signal through the hands-free outputinterface or jack 34. The controller 50 inside the transaction apparatus12 decodes the transaction information and the transaction data aredisplayed to the user on the screen 36. Following the instructions onthe screen 36, the user swipes their transaction card 24 in the slot 39of the magnetic card reader 50.

The data is then sent to the mobile phone 14 in analog audio form. Thus,the mobile phone 14 receives the analog audio data as a normal audioinput. The mobile phone 14 then encodes the audio input using forexample the normal GSM voice codec and sends this audio to the callingtransaction server 18. The transaction server 18 receives the data inanalog audio form, decodes the data to recover the transaction card dataand the payment details. The transaction data is reformatted and sent tothe remote processor/issuer 20 which either approves or rejects thetransaction. The transaction result is sent back to the transactionserver 18. The transaction server 18 transforms the transaction data toan audio signal such as DTMF waveform and sends it to the mobile phone14 and in turn to the transaction apparatus 12. The transactionapparatus 12 decodes the data and displays the transaction result on tothe screen 36 to inform the user. A receipt is sent to the email of theuser as a record and the online purchase is completed. In the aboveembodiment, it should be noted that the mobile phone 14 does not requireinstallation of any software and it acts only as a conduit of analogaudio for data communication between the transaction a and thetransaction server.

With reference to FIGS. 7 and 8, there is shown another embodiment ofthe transaction and communication assembly, denoted here as 16′.

The assembly 16′ includes a communication device 14 (a mobile phone)linked via a cable 30 to a transaction apparatus 12′. The transactionapparatus 12′ comprises one-way device without a screen or control padand as such, only includes an input device 38′ in the form of a slot 39′for capturing information from a transaction card 24 and sending thisinformation without conversion directly to the mobile phone 14 via cable30. The output device of the assembly 16′ is provided by the mobilephone 14 in the form of its display screen 36′. The additional inputdevice of the assembly 16′ is also provided by the mobile phone 14 inthe form of a control pad 40′ or keypad. Furthermore, the controller 51of the mobile phone 14 is the controller of the assembly 16′. As such,in this embodiment, installation of a software application controller 51is necessary. This software application is used to convert between audioand digital signal and to receive and transmit and audio data to andfrom the hands-free interface 41.

For example, to send money, the sender plugs the transaction apparatus12′ into the mobile phone 14 and selects via the keypad 40′ a “sendmoney” function on the software application displayed via screen 36′.The user enters the recipient phone number or email address andtransaction amount. Following instructions on the mobile phoneapplication via screen 36′, the user swipes the transaction card 24against the card reader slot 39′ on the transaction apparatus 12′. Theanalog signal from the magnetic card 24 is sent via the hands-freeinterface 41 where the software application of the controller 51converts the received signal back to binary data for example as storedon the magnetic card 34. Optionally, the user has to enter their PIN forauthentication as in the case of a debit card transaction through thesoftware application.

As explained above with respect to the transaction network 10 of FIG. 1,after the user has confirmed the transaction, a call is made to thetransaction server 18. The transaction card data, along with thetransaction data, are encoded and sent to the transaction server 18 inthe form of general-packet radio-service (GPRS) data. The transactionserver 18 decodes the transaction data, reformats and sends this data tothe processor/issuer 20 for approval. This validation information datais then returned to the transaction server 18. The validation data issent back from the transaction server 18 to the mobile phone 14 in audioformat and converted by the software application in the controller 51for displayed to the user via screen 36. For recording purpose, areceipt is sent as an email and/or SMS to the sender. Another message issent to the recipient either as an email or SMS to inform the recipientof the transaction and provides the recipient with the transactionnumber and authentication number for accessing the transaction.

In another example, in order to receive money, the recipient plugs thetransaction apparatus 12′ into the mobile phone 14 and selects the“receive money” function on the software application. The user entersthe transaction number and authentication number. Following instructionson the mobile phone 14 application, the user swipes the card 24 againstslot 39′ of transaction apparatus 12′. The analog signal from themagnetic card is sent via the hands free interface 41 where the softwareapplication of the controller 51 converts the received signal back tobinary data as stored on the magnetic card. Optionally, the user has toenter his PIN for authentication as in the case of a debit cardtransaction through the software application.

After the user has confirmed the transaction, a call is made to thetransaction server 18. The transaction card data, along with thetransaction data, are encoded and sent to the transaction server 18 asGPRS data. The transaction server 18 decodes the transaction data,reformats and sends them to the processor/issuer for approval. Thetransaction result is then sent back from the transaction server 18 tothe mobile phone 14 where the data is displayed to the user. Forrecording purpose, a receipt is sent as an email and/or SMS to thesender. Another message is sent to the recipient either as an email orSMS to inform the recipient of the transaction result.

It is to be understood that the invention is not limited in itsapplication to the details of construction and parts illustrated in theaccompanying drawings and described hereinabove. The invention iscapable of other embodiments and of being practiced in various ways. Itis also to be understood that the phraseology or terminology used hereinis for the purpose of description and not limitation. Hence, althoughthe present invention has been described hereinabove by way ofembodiments thereof, it can be modified, without departing from thespirit, scope and nature of the subject invention.

The invention claimed is:
 1. A portable reader apparatus for reading a payment device having information stored on an integrated circuit incorporated into said payment device, the apparatus comprising: a sensor for reading information stored on said integrated circuit incorporated into said payment device; a controller coupled to the sensor for converting said information to a format suitable for transmission to a mobile communication device; and a communication link for coupling the portable reader apparatus to said mobile communication device for the transmission of said information there between; wherein the sensor reads said information, the controller converts said information into a format suitable for transmission to said mobile communication device and transmits said information via the communication link to said mobile communication device, and said mobile communication device transmits said information to a remote transaction server for processing a commercial transaction.
 2. The portable card reader apparatus from claim 1, in which said payment device is selected from a group consisting of a chip card, EMV card, proximity detector or NFC card, contactless card, mobile NFC device, or any combination thereof.
 3. The portable card reader apparatus from claim 1, wherein the communication link comprises a link selected from the group consisting of a wired connection, a wireless connection, an analog channel, a digital channel, a hands-free interface, a Bluetooth connection, a USB connection, a Wi-Fi connection and any combination thereof.
 4. The portable card reader apparatus from claim 1, wherein said information transmitted via the communication link to said mobile communication device is encrypted.
 5. The portable smart card reader apparatus from claim 1, wherein said mobile communication device receives transaction validation information from said remote transaction server.
 6. A method for reading a payment device having information stored on an integrated circuit incorporated into said payment device, the method comprising the steps of: providing a portable reader apparatus comprising a sensor for reading information stored on said integrated circuit incorporated into said payment device; a controller coupled to the sensor for converting said information to a format suitable for transmission to a mobile communication device; a communication link for coupling the portable reader apparatus to said mobile communication device for the transmission of said information there between; wherein the sensor reads said information, the controller converts said information into a format suitable for transmission to said mobile communication device and transmits said information via the communication link to said mobile communication device; providing said information to said mobile communication device for further processing by circuitry contained in said mobile communication device; and said mobile communication device transmits said information to a remote transaction server for processing a commercial transaction.
 7. The portable reader apparatus claim 6, in which said payment device is selected from a group consisting of a chip card, EMV card, proximity detector or NFC card, contactless card, mobile NFC device, or any combination thereof.
 8. The portable reader apparatus claim 6, wherein the communication link comprises a link selected from the group consisting of a wired connection, a wireless connection, an analog channel, a digital channel, a hands-free interface, a Bluetooth connection, a USB connection, a Wi-Fi connection and any combination thereof.
 9. The portable reader apparatus claim 6, wherein said information transmitted via the communication link to the mobile communication device is encrypted.
 10. The portable reader apparatus claim 6, wherein said mobile communication device receives transaction validation information from said remote transaction server. 